XML 35 R24.htm IDEA: XBRL DOCUMENT
v3.21.2

Operating Segments | 3 Months Ended
--- | ---
Sep. 30, 2021
Operating Segments [Abstract] |
Operating Segments | 17.Operating segments Operating segments The Company discloses segment information as reflected in the management information systems reports that its chief operating decision maker uses in making decisions and to report certain entity-wide disclosures about products and services, and the countries in which the entity holds material assets or reports material revenues. The Company currently has three reportable segments: Processing, Financial services and Technology. All three segments operate mainly within South Africa and certain of our activities outside of South Africa have been allocated to Processing. The Company’s reportable segments offer different products and services and require different resources and marketing strategies but share the Company’s assets. The Processing segment includes fees earned by the Company from processing activities performed for its customers and revenue generated from the distribution of prepaid airtime. The Company provides its customers with transaction processing services that involve the collection, transmittal and retrieval of all transaction data. Customers that have a bank account managed by the Company are issued cards that can be utilized to withdraw funds at an ATM or to transact at a merchant point of sale device (“POS”). The Company earns processing fees from transactions processed for these customers. The Company also earns fees on transactions performed by other banks’ customers utilizing its ATM, POS or bill payment infrastructure. The Processing segment includes IPG’s processing activities for fiscal 2021 as IPG’s activities were ceased in fiscal 2021. The Financial services segment includes activities related to the provision of financial services to customers, including a bank account, loans and insurance products. The Company charges monthly administration fees for all bank accounts. The Company provides short-term loans to customers in South Africa for which it earns initiation and monthly service fees. The Company writes life insurance contracts, primarily funeral-benefit policies, and policy holders pay the Company a monthly insurance premium. The Technology segment includes sales of hardware and licenses to customers. Hardware includes the sale of POS devices, SIM cards and other consumables which can occur on an ad hoc basis. Licenses include the right to use certain technology developed by the Company. Corporate/Eliminations includes the Company’s head office cost center and the amortization of acquisition-related intangible assets. 17.Operating segments (continued) Operating segments (continued) The reconciliation of the reportable segment’s revenue to revenue from external customers for the three months ended September 30, 2021 and 2020, is as follows:
|  |  |  |  |  | Revenue (as restated)(1)
|  |  |  |  |  | Reportable Segment |  |  | Inter-segment |  |  | From external customers
| Processing | $ | 21,356 |  | $ | 1,200 |  | $ | 20,156
| Financial services |  | 10,626 |  |  | 940 |  |  | 9,686
| Technology |  | 4,824 |  |  | 162 |  |  | 4,662
|  | Total for the three months ended September 30, 2021 | $ | 36,806 |  | $ | 2,302 |  | $ | 34,504
| Processing(1) | $ | 22,506 |  | $ | 988 |  | $ | 21,518
| Financial services |  | 8,265 |  |  | 745 |  |  | 7,520
| Technology |  | 6,211 |  |  | 113 |  |  | 6,098
|  |  | Total for the three months ended September 30, 2020 | $ | 36,982 |  | $ | 1,846 |  | $ | 35,136
(1) Processing for the three months ended September 30, 2020 has been restated for the error described in Note 1. The Company does not allocate interest income, interest expense or income tax expense to its reportable segments. The Company evaluates segment performance based on segment operating income before acquisition-related intangible asset amortization which represents operating income before acquisition-related intangible asset amortization and expenses allocated to Corporate/Eliminations, all under GAAP. The reconciliation of the reportable segments measures of profit or loss to loss before income tax expense (benefit) for the three months ended September 30, 2021 and 2020, is as follows:
|  |  |  |  | Three months ended
|  |  |  |  | September 30,
|  |  |  | 2021 |  | 2020
| Reportable segments measure of profit or loss | $ | (9,526) |  | $ | (7,898)
|  | Operating loss: Corporate/Eliminations |  | (1,699) |  |  | (2,877)
|  | Interest income |  | 389 |  |  | 611
|  | Interest expense |  | (816) |  |  | (747)
|  |  | Loss before income tax expense (benefit) | $ | (11,652) |  | $ | (10,911)
17.Operating segments (continued) The following tables summarize segment information that is prepared in accordance with GAAP for the three months ended September 30, 2021 and 2020:
|  |  |  |  |  |  |  |  |  | Three months ended
|  |  |  |  |  |  |  |  |  | September 30,
|  |  |  |  |  |  |  |  | 2021 |  | 2020
|  |  |  |  |  |  |  |  |  |  | (as restated)(1)
| Revenues |  |  |  |  |
|  | Processing | $ | 21,356 |  | $ | 22,506
|  |  | All others |  | 21,356 |  |  | 21,297
|  |  | IPG |  | - |  |  | 1,209
|  | Financial services |  | 10,626 |  |  | 8,265
|  | Technology |  | 4,824 |  |  | 6,211
|  |  | Total |  | 36,806 |  |  | 36,982
| Operating (loss) income |  |  |  |  |
|  | Processing |  | (7,131) |  |  | (7,301)
|  |  | All others |  | (7,131) |  |  | (4,529)
|  |  | IPG |  | - |  |  | (2,772)
|  | Financial services |  | (2,998) |  |  | (2,372)
|  | Technology |  | 603 |  |  | 1,775
|  |  | Subtotal: Operating segments |  | (9,526) |  |  | (7,898)
|  |  | Corporate/Eliminations |  | (1,699) |  |  | (2,877)
|  |  |  | Total |  | (11,225) |  |  | (10,775)
| Depreciation and amortization |  |  |  |  |
|  | Processing |  | 594 |  |  | 704
|  | Financial services |  | 90 |  |  | 136
|  | Technology |  | 193 |  |  | 2
|  |  | Subtotal: Operating segments |  | 877 |  |  | 842
|  |  | Corporate/Eliminations |  | 18 |  |  | 81
|  |  |  | Total |  | 895 |  |  | 923
| Expenditures for long-lived assets |  |  |  |  |
|  | Processing |  | 514 |  |  | 246
|  | Financial services |  | 56 |  |  | 28
|  | Technology |  | 128 |  |  | 1
|  |  | Subtotal: Operating segments |  | 698 |  |  | 275
|  |  | Corporate/Eliminations |  | - |  |  | -
|  |  |  | Total | $ | 698 |  | $ | 275
(1) Revenues-Processing-All others for the three months ended September 30, 2020 have been restated for the error described in Note 1. The segment information as reviewed by the chief operating decision maker does not include a measure of segment assets per segment as all of the significant assets are used in the operations of all, rather than any one, of the segments. The Company does not have dedicated assets assigned to a particular operating segment. Accordingly, it is not meaningful to attempt an arbitrary allocation and segment asset allocation is therefore not presented.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration